On July 9, 2026, the First Department issued a decision in G-Unit Books, Inc. v. Tompkins, 2026 NY Slip Op. 04370, holding that a court did not abuse its discretion in denying a default judgment against a defendant whose answer was four months later because of questions regarding whether the defendant was served, explaining:
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Jury Trial Waiver Can Apply to Persons Who Do Not Sign Agreement Containing the Waiver
By John Lundin
On July 9, 2026, the First Department issued a decision in Homapour v. 3M Props., LLC, 2026 NY Slip Op. 04371, holding that a jury trial waive can apply to persons who did not sign the agreement containing the waiver, explaining:
The jury demand was also properly struck. The Winters Operating Agreements waived the…
Corporation Cannot Assert a Defense of Civil Usury
By John Lundin
On July 8, 2026, the Second Department issued a decision in LF Collateral SPV IV, LLC v. Citadel NY, Inc., 2026 NY Slip Op. 04288, holding that a corporation cannot assert a defense of civil usury, explaining:
A corporation or a limited liability company (hereinafter LLC), or an individual guarantor of such an entity’s…
No Separate Claim for Breaching the Corporate Veil
By John Lundin
On July 2, 2026, the First Department issued a decision in Avail Holding LLC v. ICM Funding LLC, 2026 NY Slip Op. 04256, holding that there is no separate cause of action for piercing the corporate veil, explaining:
Moreover, Supreme Court properly dismissed the fourth counterclaim, which purports to interpose a cause of action…
Counsel Sanctioned For Bringing Frivolous Appeal Seeking to Reverse Trial Court’s Sanctions Against It
By John Lundin
On July 2, 2026, the First Department issued a decision in Slabakis v. Poyiadjis, 2026 NY Slip Op. 04265, sanctioning counsel for bringing a frivolous appeal seeking to reverse the trial court’s sanctions against counsel, explaining:
Supreme Court was entitled, pursuant to CPLR 5019(a), to amend its November 8, 2024 order to reflect that…
Court Should Issue Declaration When Dismissing Cause of Action for Declaratory Judgment
By John Lundin
On July 1, 2026, the Second Department issued a decision in Wellpath Holdings, Inc. v. XL Ins. Am., Inc., 2026 NY Slip Op. 04229, holding that when there are no questions of fact, a court should issue a declaration when dismissing a cause of action for a declaratory judgment, explaining:
A motion to dismiss…
Receivables Purchase Agreement Not an Usurious Loan
By John Lundin
On June 10, 2026, Justice Doyle of the Seventh Judicial District Commercial Division issued a decision in Bizfund, LLC v. Elks Constr., LLC, 2026 NY Slip Op. 32089(U), holding that a receivable purchase agreement was not an usurious loan, explaining:
The Court rejects the defendants’ argument that the agreement is a usurious loan. To…
Trial Court Erred in Conditioning Discontinuance on Payment of Opposing Party’s Fees
By John Lundin
On June 30, 2026, the First Department issued a decision in Matter of Miller v. 22 Ericsson Owner LLC, 2026 NY Slip Op. 04148, holding that a trial court erred in conditioning discontinuance on payment of a significant portion of the opposing party’s fees, explaining:
Petitioner commenced this action for dissolution in 2022. He…
Unconscionability Defense fails for Lack of Procedural Unconscionability
By John Lundin
On June 26, 2026, the Fourth Department issued a decision in NewCo Capital Group LLC v. SPE Trading, Inc., 2026 NY Slip Op. 04057, holding that an unconscionability defense failed for lack of procedural unconscionability, explaining:
We also reject defendants’ contention that the agreement is unconscionable. Whether a contract or any clause of the…
Court Erred in Not Sanctioning Party Whose Claims Were Based On False Affidavit
By John Lundin
On June 25, 2026, the First Department issued a decision in Mendon Ventures Fintech Fund I LP v. Equitus Corp., 2026 NY Slip Op. 04040, holding that a court erred in not sanctioning a party whose claims were based on a false affidavit, explaining:
The court improvidently exercised its discretion in denying plaintiff an…